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Strategy’s recent bitcoin sales should restore investor confidence in its financing structure by strengthening its cash reserves for dividend payments, according to Grayscale.Grayscale said the stronger financing position could help bitcoin find a more durable price bottom by reducing tail risks, or the chances of severe negative outcomes, related to Strategy.

Strategy has sold 3,588 BTC for approximately $216 million, reducing its total holdings to 843,775 BTC.Proceeds from the sales were used to fund payment of distributions on preferred stock and to replenish its USD reserve.

Kraken allows ten xStocks as collateral, widening capital use for eligible non-US traders globally today.Broad-market ETFs carry lower haircuts, while volatile names like MSTRx and HOODx receive higher discounts.Related coverage shows Kraken moving tokenized assets toward collateral, cash management and institutional credit products.

Coinbase has rallied nearly 19% in five trading days despite Bank of America reporting $17.2 billion in U.S. equity fund outflows.The exchange is expanding its European presence under MiCA while offering a 5% transfer bonus to attract users after rivals exited.Technical indicators show improving momentum, with Coinbase testing key trendline resistance near the $170 Fibonacci level.

STRC, Strategy’s preferred stock, traded as low as $75 from its $100 par value before Strategy overhauled its framework on June 29 and let the price float instead of defending $100.Bitwise CIO Matt Hougan called the STRC selloff a classic “end-of-cycle” pattern and said he expects a new bitcoin bull market to begin this fall.

FBI Director Kash Patel disclosed a $100,001 to $250,000 purchase of Strategy stock about six months after buying the shares, according to a NOTUS report.

Bitwise CIO Matt Hougan says the STRC unwind could signal Bitcoin is nearing a market bottom.Hougan expects institutional investors to replace Strategy as the primary driver of Bitcoin demand.He believes the current deleveraging phase could pave the way for a new Bitcoin bull market this fall.

Michael Saylor says MSTR’s open interest-to-market-cap ratio has reached nearly 72%, far ahead of major U.S. tech stocks.MSTR rebounded above $100 as Bitcoin climbed past $62,000, lifting other crypto-related stocks.Bitwise and Wall Street remain positive on Bitcoin despite recent Strategy price target cuts from Canaccord and TD Cowen.

FBI Director Kash Patel failed to disclose a significant purchase of stock in Bitcoin treasury firm Strategy from last November.

FBI Director Kash Patel disclosed a six figure Strategy stock purchase months after the reporting deadline required under the STOCK Act.The delayed filing has drawn criticism from government watchdogs, while the Justice Department said the investment did not create a conflict of interest.The disclosure adds to recent scrutiny of cryptocurrency related financial interests among senior United States government officials.

Grayscale says Bitcoin may be near its low if policy and treasury risks ease soon.A stalled CLARITY Act could keep regulatory pressure high as Bitcoin trades near stress levels.Fed rate hikes and DAT deleveraging remain the main downside risks in Grayscale’s scenario now.

STRC briefly fell to a record low of $71.40, leaving the preferred shares about 25% below par.Metaplanet and Nakamoto also trade below a 1.0 enterprise mNAV, while Strive remains above parity.

Analysts argue that Strategy should prioritize rebuilding liquidity over new bitcoin purchases.SATA, a similar bitcoin-backed preferred security from Strive, broke below last week’s lows after previously holding near par.

Bitcoin fell to a two-week low price Wednesday as Strategy shares dove below the $100 mark for the first time since March 2024.

CryptoQuant said Strategy should stop buying bitcoin for now as its dividend obligations have risen while its cash reserves have fallen sharply.The firm said Strategy should rebuild its cash reserves and become more selective about when it accumulates bitcoin.

MSTR common is a premium on a residual claim, not Bitcoin at a discount. Strategy sits ~$9.4B underwater on its BTC, and once ~$6.7B of debt and the ~$15.5B preferred stack are subtracted, the levered common falls faster than Bitcoin while the premium’s supports erode.The current danger for the firm is a slow grind on liquidity and carry. Debt is unsecured and the Bitcoin unencumbered, so nothing forces a sale; the real pressure is the ~$1.7B annual dividend, a 2027–2028 note put wall, and a reserve that covers only ~10 months and isn’t escrowed.The funding flywheel now runs in reverse. Accumulation is accretive only above ~1.22x but screens at ~0.76x, so new capital increasingly funds dividends rather than coins.The recent STRC break, paused ATM, and first BTC sale show the strain arriving.The full PDF version of this report is accessible here.